Solar Buyback Plans in Texas: How They Work | Green Energy

How Solar Works With the Texas Grid

When you install solar panels in Texas, your home stays connected to the grid. During the day, your panels may generate more electricity than your home needs at that moment. That surplus flows out to the grid through your meter. At night or during heavy air conditioning, you pull electricity back from the grid like any other customer.

A solar buyback plan is the mechanism that gives you credit for that surplus. Without one, the extra power you send to the grid is essentially free electricity for your provider.

Why Texas Doesn’t Have Traditional Net Metering

In states with net metering laws, utilities are required to credit solar customers at the full retail rate for every kilowatt-hour they export. Texas took a different path. Because the state has a deregulated electricity market, there is no mandate forcing providers to buy back your solar power at any specific rate.

Instead, individual retail electricity providers choose whether to offer buyback plans and set their own terms. This means the Texas solar buyback market is competitive — some providers offer generous credits to attract solar customers, while others don’t offer buyback plans at all.

What a Typical Solar Buyback Plan Looks Like

Most solar buyback plans in Texas share a few common features:

A credit rate for exported power. This could be a flat rate (say, 8 cents per kWh), the real-time wholesale rate, or even a one-to-one match with your retail rate.
A retail rate for power you pull from the grid. This is the price you pay when your home needs more electricity than your panels produce.
Monthly bill credits. Your exports reduce your bill. Some plans roll unused credits forward; others reset each month.
A base charge or minimum bill. Even if your panels cover all of your electricity, you may still owe a small monthly fee.

Which Providers Offer Buyback Plans

Several Texas electricity providers have solar buyback options, including TXU Energy, Green Mountain Energy, Chariot Energy, and Rhythm Energy. The specifics change regularly as providers update their plan offerings, so it is worth comparing current options rather than relying on a plan you heard about last year.

When you compare plans on ChooseMyPower, you can filter specifically for solar buyback to see what is available in your area right now.

How to Pick the Right Plan

Start by looking at how much electricity your home actually pulls from the grid versus how much your panels export. If you export a lot, the credit rate matters most. If you only export a small amount, the retail rate you pay for grid power has a bigger impact on your total bill.

Watch out for plans that advertise a high credit rate but pair it with an equally high retail rate or steep base charges. The math has to work in both directions. Pull your last 12 months of electricity data and run the numbers before you sign a contract.

Also consider contract length. Locking into a 24-month plan with a mediocre credit rate means missing out if better options appear next year.

Frequently Asked Questions

Is net metering available in Texas?

Texas does not have a statewide net metering law. Instead, some retail electricity providers voluntarily offer solar buyback plans that credit you for the excess power your panels produce. The credit rate, billing structure, and terms vary from provider to provider.

How much will I get paid for my extra solar power?

Credit rates on solar buyback plans typically range from the wholesale price of electricity (around 3 to 5 cents per kWh) up to the full retail rate you pay for power you pull from the grid. Some providers offer a flat credit rate, while others tie it to real-time wholesale prices.

Can I sell solar power back to the grid in Texas?

Yes, but you are earning bill credits rather than getting a check. When your panels produce more than your home needs, that excess flows to the grid and your provider applies a credit to your account. The credit offsets electricity you draw at night or on cloudy days.

Do I need a special meter for a solar buyback plan?

You need a bi-directional (net) meter so your utility can measure electricity flowing both into your home and back out to the grid. Your Transmission and Distribution Utility (TDU) typically handles the meter swap, and your solar installer coordinates the process.

What should I look for in a solar buyback plan?

Compare the credit rate per kWh, whether the rate is fixed or variable, the length of the contract, any minimum fees or base charges, and whether unused credits roll over month to month. A high credit rate means nothing if the plan has a steep base charge that eats into your savings.